Kickbacks Alleged in Cincinnati Could Violate Overtime Laws

Cincinnati, OHIn what appears to be an unusual case of alleged overtime pay violations, a handful of workers say their employer paid them overtime for extra hours worked, but then required them to kick back the overtime paid to the employer, under the threat of deportation.

The Cincinnati Enquirer reported on April 7 as to the bizarre allegations surrounding the operators of two animal hospitals in Cincinnati. To that end, the US Department of Labor filed a petition following a five-month investigation that is alleged to have uncovered violations to the Fair Labor Standards Act.

The case centers on allegations that the operators of two animal hospitals—and specifically the Hamilton Avenue Animal Hospital—required undocumented immigrants in their employ to return overtime paid to them.

The Enquirer refers to a story from October of last year, featuring allegations from three of the defendant's former employees. According to the report, the employees were paid $8 per hour in straight time and an overtime rate of $12 per hour for overtime hours worked, according to overtime pay laws. However, the employees allege that their employers extorted them into returning a total of $24,000 worth of overtime pay originally distributed to them.

If they didn't, the allegation holds that the defendants would deport them. The complainants are reported to speak little English. They claimed to have worked several dozen hours worth of overtime within a two-week pay period. After paying the $12 rate as required under law for overtime, the employers are alleged to have required a kickback of $4 for every hour of overtime worked—effectively negating the overtime wage—under alleged threat of reporting them to immigration officials.

"This is a particularly egregious case in which vulnerable workers, some of whom...spoke little English, were taken advantage of by their employer," said Nancy Leppink, acting administrator of the department's Wage and Hour Division, in comments related to the alleged overtime laws violation "The employers clearly understood their legal obligations but took advantage of workers they believed would not stand up for their rights. But the workers did."

The US Department of Labor has filed a petition in US District Court in Cincinnati seeking $42,628.58 in overtime owed to 21 workers, together with an equal amount in damages.

This alleged overtime labor laws violation is not the first brush the owners of Hamilton Avenue Animal Hospital have had with the US Department of Labor. According to the Enquirer, there have been three prior investigations for alleged violations of fair labor laws.